EHIP-2: Begin Treasury Diversification with UNI and AAVE and Modify Governance

Summary

Begin Event Horizon’s treasury diversification process. Replace the Discord discussion + Discourse forum governance requirements with a forum post in the governance-forum channel. Furthermore, all meta-governance proposals go straight to Snapshot.

Motivation

Treasury Diversification: Core to Event Horizon’s protocol structure is a basket of DAO tokens used to back HVAX tokens and to be mobilized by Event Horizon voters for meta-governance vote multiples. To that end, Event Horizon should begin the process of diversifying its treasury balance sheet. Based upon previous Discord discussions, the initial proposed strategy is to deploy $20,000 of treasury assets purchasing equal parts UNI and AAVE.

Uniswap and Aave need no intro. That’s part of the reason their governance tokens would serve a solid foundation to HVAX’s backing. Event Horizon would benefit from these top tier assets in several ways:

Backing HVAX with the leading DEX and the leading money market protocols’ governance tokens affords continued confidence from stakers and capital partners to continue participating in our yield partnership with Metronome knowing that their yield proceeds are being allocated within strong protocol assets. At present we have approximately $1m in TVL and a growing pipeline of $2m more in interested capital partners. The proceed yield from this pilot goes directly toward growing the governance treasury. AAVE also supports single-sided staking, a potential source of compound treasury growth for Event Horizon. Given current market conditions, larger, more established protocol assets may be better positioned to grow in value and/or face lesser degrees of volatility in continued market turbulence.

The intention of this initial allocation is to strengthen the treasury at large. While Event Horizon’s net impact on any given vote within Uni or AAVE may be relatively small, our net treasury value will be more fortified.

Higher proportional impact, but smaller market cap, alternative DAOs mentioned in our community Discord conversations would be better tackled after this foundation of a) a solid backing and b) more sizable TVL is first laid. That being said, we still do expect sizable multiples when voting on either Uniswap or Aave proposals through Event Horizon when compared to voting natively in either.

Governance Process Modification: Discord channels and polls can serve the same purpose as a Discourse poll. So in order to minimize governance fragmentation Event Horizon should swap the previous Discord + Discourse requirement to simply a Discord governance-forum post requirement. All meta-governance will skip this step due to the time sensitive manner of meta-governance.

Specification

That the Event Horizon treasury swap $10k of stables into UNI and another $10k of stables into AAVE.

The new governance process will begin in Discord with a governance-forum post before moving to snapshot after 3 days. These posts should include a title and summary in the post itself with an attached .pdf outlining the title, motivation, specification, and polling options. Due to spam and bot considerations, this poll does not have to pass via majority rule. It simply has to show sufficient interest to proceed. Once posted to Snapshot, the Event Horizon community will have 3 days to vote, with the largest quantity of votes determining the winner.